News

Coca-Cola Secretly Migrated From Regular Sugar To Non-nutritive Sweeteners – FCCPC

Published

2 months ago

August 1, 2024

By Gloria Ikibah

The Federal Competition and Consumer Protection Commission (FCCPC) has accused Coca-Cola Nigeria Limited (Coca-Cola) and Nigerian Bottling Company Limited (NBC) for contravening the laws of consumer protection in Nigeria.

In a statement by the management of FCCPC on Thursday in Abuja, the Commission stated that the strategy and conduct at the time appeared to possibly infringe FCCPA provisions prohibiting misleading trade descriptions, unfair marketing tactics, and questions whether some pricing strategies in certain geographical areas of Nigeria were on account of market power in the geographic areas, and as such constituted abuse of dominant market position.

The commission disclosed that when it commenced investigation in 2019, the company had begun a migration of their Coke brand from a formulation that included regular sugar to non-nutritive sweeteners including Fanta and Sprite.

The statementreads: “The migration at the time, though not concluded, apparently followed previously concluded, but undisclosed and uncommunicated migrations with respect to their other brands, to wit: Fanta and Sprite (as the Investigation will later discover).

“The Commission opened a formal investigation accordingly. Between June 2019 and December 2020, the Commission and Coca-Cola as well as NBC engaged repeatedly, including seeking and securing vast internal documents and production logs to determine the veracity or otherwise of allegations that were subject of investigation or explanations provided by Coca-Cola and NBC.

“By December 2020, the Commission was convinced based on the evidence, that Coca-Cola and NBC on multiple occasions, and counts violated, and remained in violation of the FCCPA, particularly with respect to transparency, and clear disclosure obligations to their product patrons, intentional communications in describing their Coca-Cola “Original Taste, Less Sugar “variant as one and the same, as well as unchanged, when in actual fact, same had indeed changed, was different, differently formulated and not the same as their otherwise “classic, or “Original Taste”. One of the parties also attempted to, or misled the Commission under Section 112 of the FCCPA.

“Coca-Cola and NBC initially sought to end the investigation and regulatory process by adopting clearer, more transparent and truthful descriptions and differentiation of the relevant variants of their products. The Commission granted this accommodation, and also gave Coca-Cola and NBC the opportunity and prerogative to propose remedies including descriptions and product differentiations that comply with applicable statutory standards

“Coca-Cola, NBC, and the Commission engaged in a lengthy process of building consensus around a mutually agreed differentiation and description of the different relevant products. Coca-Cola and NBC sought an extended timeline before changing to the newly mutually agreed product descriptions and differentiations as proposed by Coca-Cola and NBC in order to exhaust existing packaging inventory, and lead time for new packaging inventory to arrive in stock. The Commission granted the extension as requested”.

The FCCPC further noted that on the eve of the cut-off date, and end of the extension, Coca-Cola and NBC abandoned the months of work and mutually agreed outcome with the Commission, for a different business strategy, which has turned out not to meet the applicable standards.

“Over the next years, it remained abundantly apparent that Coca-Cola and NBC’s meritless efforts failed, and it became clear to the Commission that neither Coca-Cola, nor NBC desired or intended to provide transparency to consumers in a manner that complied with the standards in the FCCPA.

“Accordingly, the Commission concluded the then open investigation, and again engaged Coca-Cola and NBC with a view to providing sufficient remedies. Coca-Cola despite this prolonged investigation, and multiple opportunities to comply with the law, have failed to do same. Despite multiple and repeated further engagements with Coca-Cola, NBC and their respective retained legal practitioners, the current market status and consumer feedback clearly demonstrates the colossal ineffectiveness of the milder and weak differentiations Coca-Cola and NBC have adopted.

“Accordingly, and considering that the conduct continues and remains, the Commission has entered, issued and served its Final order on Coca-Cola and NBC on July 29, 2024. The Final Order contains the Commission’s findings some of which include:

“Misleading trade descriptions under Section 116 FCCPA by continuing to mislead consumers to believing Coca-Cola Original Taste is not materially different from Coca-Cola Original Taste “Less Sugar.”

“Unfair marketing tactics: Contrary to Section 124(1)(a) of the FCCPA, Coca-Cola Nigeria markets Coca-Cola Original Taste Less Sugar in packaging first, indistinguishable, and now not sufficiently distinguishable from Coca-Cola Original Taste, contrary to Sections 123(1)(a), (b), and (c) of the FCCPA.

“Further, Coca-Cola and NBC after regulatory intervention still failed to take appropriate steps to modify misleading behaviour demonstrating that the Companies acted intentionally by misrepresenting Coca-Cola Original Taste Less Sugar as Coca-Cola Original Taste in a deliberate business strategy”, the statement further reads.

News

Shettima becomes 1st VP to lead Nigeria’s delegation to UN Assembly in 25 yrs

Published

4 hours ago

September 20, 2024

Kayode Sanni-Arewa

President Bola Ahmed Tinubu has decided not to attend the 79th United Nations General Assembly (UNGA) session in New York this year.

The president has thus directed Vice President Kashim Shettima to lead Nigeria’s delegation.

President Tinubu, who returned to the country last Sunday after his trip to China and the United Kingdom, according to a statement yesterday by his spokesman, Bayo Onanuga, wants to focus on domestic issues and address some of the country’s challenges, especially after the recent devastating flooding.

“At UNGA 79, Vice President Shettima will deliver Nigeria’s national statement to the General Assembly, attend important sideline events, and hold bilateral meetings.”

“The high-level General Debate, with the theme ‘Leaving no one behind: Acting together for the advancement of peace, sustainable development and human dignity for present and future generations,’ will run from Tuesday, September 24, through Saturday, September 28, 2024,” the statement added.

Since return to democratic governance in 199, Shettima will be the first Vice President to Nigeria’s delegation to UNGA.

Only Goodluck Jonathan represented Nigeria as Acting president in September 2010 at the 65th UNGA, while late President Umaru Musa Yar’adua was away in Saudi Arabia due to his ill health.

News

Plateau Assembly approves N5.8bn for LG election

Published

4 hours ago

September 20, 2024

Kayode Sanni-Arewa

The Plateau State House of Assembly, on Thursday, approved N5.8bn for the conduct of the local government election in the state slated for October 9, 2024.

The approval by the House followed a communication from Governor Caleb Mutfwang, which was read at plenary by the Assembly Speaker, Gabriel Dewan.

The Speaker stated that the request was necessary as there was no budgetary allocation for the LG elections in the 2024 budget.

A member of the State Assembly, who declined to be named because he was not authorised to speak for the Assembly, confirmed the development to The PUNCH in Jos on Thursday.

The lawmaker said, “Governor Mutfwang, at Tuesday’s plenary, sought the House’s approval for N5.7bn as the 2024 supplementary, which was increased after upward review by the legislators.”

He continued, “The House leader, Joseph Bukar, presented the bill during our plenary. While soliciting the support of members for speedy passage, he said PLASIEC was running out of time in preparation for the election.”

“In their individual contributions, Hon. Kalamu Dal suggested a downward review of the budget size, while Hon. Daniel Nanbol urged for a critical review and deliberations. Afterwards, members approved a revised sum of N5.8bn, as opposed to the N5.7bn requested.”

The increase, as explained by Bukar, was due to an increase in security allocation for the election, from N2.7m to N4.2m. “So, that is what happened, and that is where we are at the moment regarding the forthcoming LG election,” the lawmaker concluded.

News

Enugu, Kwara tighten security ahead of LG polls

Published

4 hours ago

September 20, 2024

Kayode Sanni-Arewa

Security measures have been intensified in Enugu and Kwara states ahead of their Local Government elections scheduled for Saturday, September 21, 2024.

In Enugu State, the Police Command has pledged to ensure the safety of lives and properties during the elections.

However, the peace accord signing for the elections was marred by the absence of major parties like the Peoples Democratic Party, All Progressives Congress, and Labour Party.

Only representatives from the All Progressives Grand Alliance and Accord attended but chose not to sign the accord, citing the lack of participation from the leading parties.

Enugu State Commissioner of Police, Kanayo Uzuegbu, said all wards and flashpoints had been identified, and security personnel would be on high alert to prevent any disruptions.

The Chairman of the Enugu State Independent Electoral Commission, Prof. Chris Ngwu, said the commission was fully prepared for the elections with the support of the state government in procuring necessary materials.

In Kwara State, security agencies have been actively coordinating to ensure a smooth electoral process.

Over 3,000 personnel from the Nigeria Security and Civil Defence Corps have been deployed across the state.

The Kwara State Independent Electoral Commission has completed arrangements for a trouble-free election.

Kwara State Police Public Relations Officer, Toun Ejire-Adeyemi, reported that a strategic meeting with heads of various security agencies, including the Nigerian Army, Navy, Air Force, and others, had been held to ensure coordinated efforts for maintaining law and order.

The Commissioner of Police, Victor Olaiya, guaranteed maximum security for the election period.

The NSCDC Commandant, Dr. Umar Mohammed, announced the deployment of 3,000 personnel to various polling units and emphasised their role in preventing violence, ballot snatching, and other disruptions.

Meanwhile, the Chairman of the Benue State Independent Electoral Commission, Telumun Tombowua, announced on Thursday that eight political parties will participate in the upcoming LG elections in the state, scheduled for October 5, 2024.

Addressing journalists in Makurdi, Tombowua said the election would be conducted fairly and transparently.

He emphasised that the law establishing the BSIEC does not permit the use of Bimodal Voter Accreditation Machines for this election.

Regarding the APC, Tombowua confirmed that the National Working Committee of the party had requested the commission to work with the seven-man caretaker committee appointed to oversee party affairs in the state.

He noted that while 14 parties had initially shown interest, only eight completed the necessary processes and submitted their candidates.